In an economy, the money supply growth rate is 5.0%, the equilibrium real interest rate is 1.5%, the potential growth rate is 4.0%, the economic growth rate is 1.0%, the inflation rate is 3.0%, the...


In an economy, the money supply growth rate is 5.0%, the  equilibrium real interest rate is 1.5%, the potential growth rate is 4.0%, the  economic growth rate is 1.0%, the inflation rate is 3.0%, the unemployment rate is 4.5%, and the rate of increase in the circulation speed is -2%. In this case, in an economy that pursues an inflation target of 2.0%, what  is the appropriate interest rate target based on  Taylor's rule? (Omit the unit and answer with the first decimal place.)



Jun 10, 2022
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